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IAPP Certified Information Privacy Professional/United States (CIPP/US) Sample Questions (Q68-Q73):
NEW QUESTION # 68
Which of the following is most likely to provide privacy protection to private-sector employees in the United States?
- A. State law, contract law, and tort law
- B. The U.S. Department of Health and Human Services (HHS)
- C. Amendments one, four, and five of the U.S. Constitution
- D. The Federal Trade Commission Act (FTC Act)
Answer: A
Explanation:
Unlike many other countries, the United States does not have a comprehensive federal law that regulates the privacy of private-sector employees. Instead, the privacy protection of employees depends largely on state law, contract law, and tort law. State law may provide specific rights and remedies for employees regarding issues such as drug testing, background checks, electronic monitoring, social media access, and genetic information.
Contract law may create obligations and expectations for employers and employees based on written or implied agreements, such as employment contracts, employee handbooks, or collective bargaining agreements.
Tort law may allow employees to sue their employers for invasion of privacy, such as intrusion upon seclusion, public disclosure of private facts, false light, or appropriation of name or likeness. The other options are less likely to provide privacy protection to private-sector employees in the United States. The FTC Act primarily regulates the privacy practices of businesses that collect and use consumer data, not employee data.
The U.S. Constitution only protects individuals from unreasonable searches and seizures by the government, not by private employers. The HHS only enforces the HIPAA Privacy Rule, which applies to covered entities and business associates that handle protected health information, not to all private-sector employers. References:
* IAPP CIPP/US Study Guide, Chapter 6: Workplace Privacy
* Privacy Rights of Employees Using Workplace Computers in the United States
* Employee Privacy Laws
NEW QUESTION # 69
Which venture would be subject to the requirements of Section 5 of the Federal Trade Commission Act?
- A. A local nonprofit charity's fundraiser
- B. An online merchant's free shipping offer
- C. A city bus system's frequent rider program
- D. A national bank's no-fee checking promotion
Answer: B
Explanation:
Section 5 of the Federal Trade Commission Act (FTC Act) prohibits "unfair or deceptive acts or practices in or affecting commerce."1 This prohibition applies to all persons engaged in commerce, including banks, but also exempts some entities, such as nonprofit organizations and common carriers, from FTC jurisdiction.2 Therefore, among the four options, only an online merchant's free shipping offer would be subject to the requirements of Section 5, as it involves a commercial activity thatcould potentially mislead or harm consumers. For example, if the online merchant fails to disclose the terms and conditions of the offer, or charges hidden fees, or delivers the products late or damaged, it could violate Section 5 by engaging in a deceptive practice.3 References: 1: Section 5 | Federal Trade Commission 2: Federal Trade Commission Act Section 5: Unfair or Deceptive Acts or Practices, page 13: IAPP CIPP/US Certified Information Privacy Professional Study Guide, page 23.
NEW QUESTION # 70
Which of the following is an important implication of the Dodd-Frank Wall Street Reform and Consumer Protection Act?
- A. Financial institutions must help ensure a customer's understanding of products and services
- B. Financial institutions must avoid collecting a customer's sensitive personal information
- C. Financial institutions must use a prescribed level of encryption for most types of customer records
- D. Financial institutions must cease sending e-mails and other forms of advertising to customers who opt out of direct marketing
Answer: A
NEW QUESTION # 71
The Clarifying Lawful Overseas Use of Data (CLOUD) Act is primarily intended to do which of the following?
- A. Establish baseline pnvacy obligations that US companies must comply with for personal information, even if stored in a foreign country
- B. Codify a treaty with the EU that permits the cross-border transfer of personal information from the EU to the United States in compliance with the General Data Protection Regulation (GDPR).
- C. Update the legal mechanisms through which federal law enforcement may obtain data that service providers maintain in a foreign country
- D. Prohibit foreign companies from using the personal Information of US. citizens without their consent
Answer: C
Explanation:
The Clarifying Lawful Overseas Use of Data (CLOUD) Act, enacted in 2018, updates the legal framework for federal law enforcement to access electronic data held by U.S. service providers, even when the data is stored outside the United States. The act resolves jurisdictional issues that arise in cross-border data requests and facilitates international cooperation for law enforcement purposes.
Key Provisions of the CLOUD Act:
* Data Access for Law Enforcement:
* The CLOUD Act allows U.S. federal law enforcement to compel U.S.-based service providers (e.
g., Microsoft, Google) to provide access to data stored abroad using a valid warrant or subpoena, provided the request complies with applicable laws.
* International Data Sharing Agreements:
* The CLOUD Act enables the U.S. to establish bilateral agreements with other countries to streamline access to data for law enforcement purposes. These agreements ensure that U.S. and foreign law enforcement can access data without violating each other's sovereignty or privacy laws.
* Conflict with Foreign Laws:
* The act includes mechanisms for providers to challenge data requests that conflict with the laws of the country where the data is stored, providing safeguards for compliance with foreign privacy laws like the General Data Protection Regulation (GDPR).
Explanation of Options:
* A. Codify a treaty with the EU that permits the cross-border transfer of personal information from the EU to the United States in compliance with the GDPR:This is incorrect. The CLOUD Act is not specific to the EU or GDPR compliance. Instead, it focuses on law enforcement access to data stored abroad.
* B. Update the legal mechanisms through which federal law enforcement may obtain data that service providers maintain in a foreign country:This is correct. The CLOUD Act directly addresses law enforcement's ability to compel data access from U.S. providers, regardless of the data's physical location.
* C. Establish baseline privacy obligations that U.S. companies must comply with for personal information, even if stored in a foreign country:This is incorrect. The CLOUD Act is focused on law enforcement access to data, not privacy obligations for companies.
* D. Prohibit foreign companies from using the personal information of U.S. citizens without their consent:This is incorrect. The CLOUD Act does not regulate foreign companies or impose consent requirements for using personal information.
References from CIPP/US Materials:
* CLOUD Act (18 U.S.C. ยง 2713): Establishes legal mechanisms for cross-border data access and international agreements.
* IAPP CIPP/US Certification Textbook: Discusses the CLOUD Act's impact on cross-border data requests and its interaction with global privacy laws.
NEW QUESTION # 72
How did the Fair and Accurate Credit Transactions Act (FACTA) amend the Fair Credit Reporting Act (FCRA)?
- A. It required employers to get an employee's consent in advance of requesting a consumer report for internal investigation purposes
- B. It increased the obligation of organizations to dispose of consumer data in ways that prevent unauthorized access
- C. It stipulated the purpose of obtaining a consumer report can only be for a review of the employee's credit worthiness
- D. It expanded the definition of "consumer reports" to include communications relating to employee investigations
Answer: B
Explanation:
FACTA added a new section to the FCRA that requires any person who maintains or otherwise possesses consumer information, or any compilation of consumer information, derived from consumer reports for a business purpose, to properly dispose of any such information or compilation. The purpose of this provision is to reduce the risk of identity theft and other consumer harm resulting from improper disposal of consumer information. The FTC and other federal agencies have issued rules implementing this provision, which specify the reasonable measures that covered entities must take to ensure secure disposal of consumer information, such as burning, pulverizing, shredding, erasing, or otherwise modifying the information to make it unreadable or indecipherable (16 CFR ?682.3).
NEW QUESTION # 73
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